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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2010	Feb. 16, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	ACI WORLDWIDE, INC.
Entity Central Index Key	0000935036
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 640,293,418
Entity Common Stock, Shares Outstanding		33,272,549

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2010	Dec. 31, 2009
Current assets
Cash and cash equivalents	$ 171,310	$ 125,917
Billed receivables, net of allowances of $5,738 and $2,732, respectively	77,773	98,915
Accrued receivables	9,578	9,468
Deferred income taxes, net	12,317	17,459
Prepaid expenses	13,369	12,079
Other current assets	10,462	10,224
Total current assets	294,809	274,062
Property and equipment, net	18,539	17,570
Software, net	25,366	30,037
Goodwill	203,935	204,850
Other intangible assets, net	20,448	26,906
Deferred income taxes, net	28,143	26,024
Other noncurrent assets	10,289	10,594
TOTAL ASSETS	601,529	590,043
Current liabilities
Accounts payable	15,263	17,591
Accrued employee compensation	26,174	24,492
Deferred revenue	121,936	106,349
Income taxes payable	6,181	10,681
Alliance agreement liability	1,917	10,507
Note payable under credit facility	75,000	0
Accrued and other current liabilities	24,293	25,780
Total current liabilities	270,764	195,400
Deferred revenue	31,045	31,533
Note payable under credit facility	0	75,000
Alliance agreement noncurrent liability	20,667	21,980
Other noncurrent liabilities	23,430	30,067
Total liabilities	$ 345,906	$ 353,980
Commitments and contingencies (Note 17)
Stockholders' equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding at December 31, 2010 and 2009	$ 0	$ 0
Common stock; $0.005 par value; 70,000,000 shares authorized; 40,821,516 shares issued at December 31, 2010 and 2009	204	204
Common stock warrants	24,003	24,003
Treasury stock, at cost, 7,548,752 and 6,784,932 shares outstanding at December 31, 2010 and 2009	(171,676)	(158,652)
Additional paid-in capital	312,947	307,279
Retained earnings	105,289	78,094
Accumulated other comprehensive loss	(15,144)	(14,865)
Total stockholders' equity	255,623	236,063
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 601,529	$ 590,043

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2010	Dec. 31, 2009
Current assets
Allowances for billed receivables	$ 5,738,000	$ 2,732,000
Stockholders' equity
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.005	$ 0.005
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	40,821,516	40,821,516
Treasury stock, shares	7,548,752	6,784,932

Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Revenues:

Software license fees

$ 164,559

$ 154,517

$ 168,158

Maintenance fees

135,523

130,922

125,117

Services

73,989

80,146

85,901

Software hosting fees

44,353

40,170

38,477

Total revenues

418,424

405,755

417,653

Expenses:

Cost of software license fees

^[1]

12,591

14,754

12,846

Cost of maintenance, services and hosting fees

^[1]

117,132

112,893

117,087

Research and development

74,076

77,506

75,850

Selling and marketing

70,553

61,799

73,236

General and administrative

70,096

79,244

100,272

Depreciation and amortization

20,328

17,989

16,649

Total expenses

364,776

364,185

395,940

Operating income

53,648

41,570

21,713

Other income (expense):

Interest income

665

1,042

2,609

Interest expense

(1,996)

(2,856)

(5,013)

Other, net

(3,615)

(6,648)

8,247

Total other income (expense)

(4,946)

(8,462)

5,843

Income before income taxes

48,702

33,108

27,556

Income tax expense

21,507

13,482

16,974

Net income

$ 27,195

$ 19,626

$ 10,582

Weighted average shares outstanding

Basic

33,560

34,368

34,498

Diluted

33,870

34,554

34,795

Earnings per share

Basic

$ 0.81

$ 0.57

$ 0.31

Diluted

$ 0.80

$ 0.57

$ 0.30

[1]	The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charge for depreciation.

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Beginning Balance	$ 236,063	$ 213,841	$ 241,039
Comprehensive income (loss) information:
Net income	27,195	19,626	10,582
Other comprehensive income (loss):
Foreign currency translation adjustments	(279)	8,398	(21,421)
Comprehensive income (loss)	26,916	28,024	(10,839)
Repurchase of common stock	(18,624)	(15,000)	(30,063)
Issuance of common stock pursuant to Employee Stock Purchase Plan	949	1,069	1,477
Exercises of stock options	3,147	1,811	3,841
Tax benefit of stock options exercised and cash settled	(56)	(705)	498
Stock-based compensation	7,790	7,645	7,888
Repurchase of restricted stock for tax withholdings	(562)	(622)
Ending Balance	255,623	236,063	213,841
Common Stock
Statement [Line Items]
Beginning Balance	204	204	204
Other comprehensive income (loss):
Ending Balance	204	204	204
Common Stock Warrants
Statement [Line Items]
Beginning Balance	24,003	24,003	24,003
Other comprehensive income (loss):
Ending Balance	24,003	24,003	24,003
Treasury Stock
Statement [Line Items]
Beginning Balance	(158,652)	(147,808)	(140,320)
Other comprehensive income (loss):
Repurchase of common stock	(18,624)	(15,000)	(30,063)
Issuance of common stock pursuant to Employee Stock Purchase Plan	1,332	1,862	2,618
Exercises of stock options	5,453	3,688	7,854
Non-vested restricted share awards subject to redemption	598	554	12,328
Forfeiture of non-vested restricted share awards	(1,221)	(1,326)	(225)
Repurchase of restricted stock for tax withholdings	(562)	(622)
Ending Balance	(171,676)	(158,652)	(147,808)
Additional Paid-in Capital
Statement [Line Items]
Beginning Balance	307,279	302,237	311,108
Other comprehensive income (loss):
Issuance of common stock pursuant to Employee Stock Purchase Plan	(383)	(793)	(1,141)
Exercises of stock options	(2,306)	(1,877)	(4,013)
Tax benefit of stock options exercised and cash settled	(56)	(705)	498
Stock-based compensation	7,790	7,645	7,888
Non-vested restricted share awards subject to redemption	(598)	(554)	(12,328)
Forfeiture of non-vested restricted share awards	1,221	1,326	225
Ending Balance	312,947	307,279	302,237
Retained Earnings
Statement [Line Items]
Beginning Balance	78,094	58,468	47,886
Comprehensive income (loss) information:
Net income	27,195	19,626	10,582
Other comprehensive income (loss):
Ending Balance	105,289	78,094	58,468
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Beginning Balance	(14,865)	(23,263)	(1,842)
Other comprehensive income (loss):
Foreign currency translation adjustments	(279)	8,398	(21,421)
Ending Balance	$ (15,144)	$ (14,865)	$ (23,263)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities:
Net income	$ 27,195	$ 19,626	$ 10,582
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation	6,651	6,338	6,506
Amortization	19,696	17,389	15,544
Tax expense of intellectual property shift	2,200	2,199	1,942
Deferred income taxes	9,444	(6,562)	4,739
Stock-based compensation expense	7,790	7,645	7,888
Tax benefit of stock options exercised and cash settled	(140)	114	357
Other	909	943	5,258
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed and accrued receivables, net	14,330	(10,365)	(5,401)
Other current assets	(818)	68	(187)
Other assets	(2,259)	1,387	617
Accounts payable	(2,318)	(1,680)	(2,494)
Accrued employee compensation	1,483	3,492	51
Proceeds from alliance agreement			40,935
Accrued liabilities	(7,766)	(8,412)	(2,609)
Current income taxes	(4,224)	6,029	2,130
Deferred revenue	14,715	8,412	(7,012)
Other current and noncurrent liabilities	(5,580)	(2,406)	(1,020)
Net cash flows from operating activities	81,308	44,217	77,826
Cash flows from investing activities:
Purchases of property and equipment	(4,957)	(2,942)	(7,021)
Purchases of software and distribution rights	(8,209)	(7,529)	(4,936)
Alliance technical enablement expenditures	(6,183)	(6,899)	(6,328)
Proceeds from alliance agreement, net of common stock warrants			1,498
Proceeds from transfer of assets under contractual arrangements		1,050
Acquisition of businesses, net of cash acquired		(7,047)	(169)
Net cash flows from investing activities	(19,349)	(23,367)	(16,956)
Cash flows from financing activities:
Proceeds from issuance of common stock	1,132	1,243	1,704
Proceeds from exercises of stock options	3,147	1,811	3,841
Excess tax benefit of stock options exercised	140	88	142
Repurchases of common stock	(18,624)	(15,000)	(30,063)
Repurchase of restricted stock for tax withholdings	(562)	(622)
Payments on debt and capital leases	(1,576)	(1,576)	(3,311)
Distribution to noncontrolling interest	(1,232)
Net cash flows from financing activities	(17,575)	(14,056)	(27,687)
Effect of exchange rate fluctuations on cash	1,009	6,157	(17,228)
Net increase in cash and cash equivalents	45,393	12,951	15,955
Cash and cash equivalents, beginning of period	125,917	112,966	97,011
Cash and cash equivalents, end of period	171,310	125,917	112,966
Supplemental cash flow information
Income taxes paid, net	24,928	15,202	9,940
Interest paid	$ 1,663	$ 3,564	$ 4,392

Nature of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Nature of Business and Summary of Significant Accounting Policies [Abstract]

Nature of Business and Summary of Significant Accounting Policies


1.	Nature of Business and Summary of Significant Accounting Policies

Nature of Business

ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”), develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes, or acts as a sales agent for software developed by third parties. These products and services are used principally by financial institutions, retailers, and electronic-payment processors, both in domestic and international markets.

The Company derives a substantial portion of its total revenues from licensing its BASE24 family of software products and providing services and maintenance related to those products. During the years ended December 31, 2010 and 2009 and 2008, approximately 46%, 46%, and 47%, respectively, of the Company’s total revenues were derived from licensing the BASE24 product line, which does not include the BASE24-eps product, and providing related services and maintenance. A substantial majority of the Company’s licenses are time-based (“term”) licenses.

Consolidated Financial Statements

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Recently acquired subsidiaries that are included in the Company’s consolidated financial statements as of the date of acquisition include: Euronet Essentis Limited (“Euronet” or “Essentis”) acquired during the year ended December 31, 2009. All intercompany balances and transactions have been eliminated.

On September 21, 2010, the Company dissolved its partnership in Madrid, Spain with Sistema 4B, S.A. (“Sistema”). As a result, the Company paid Sistema 1.0 million Euros (approximately $1.2 million) during the year ended December 31, 2010. Noncontrolling interest in this partnership of $1.4 million was included in other long-term liabilities as of December 31, 2009.

Capital Stock

The Company’s outstanding capital stock consists of a single class of common stock. Each share of common stock is entitled to one vote upon each matter subject to a stockholders vote and to dividends if and when declared by the Board of Directors.

Use of Estimates and Risk and Uncertainties

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The Company’s financial condition, results of operations, and cash flows are subject to various risks and uncertainties. Factors that could affect its future financial statements and cause actual results to vary materially from expectations include, but are not limited to, risks related to the global financial crisis and the continuing decline in the global economy, restrictions and other financial covenants in the Company’s credit facility, volatility and disruption of the capital and credit markets and adverse changes in the global economy, the maturation of the Company’s current credit facility, consolidations and failures in the financial services industry, the accuracy of management’s backlog estimates, the cyclical nature of the Company’s revenue and earnings and the accuracy of forecasts due to the concentration of revenue generating activity during the final weeks of each quarter, impairment of our goodwill or intangible assets, exposure to unknown tax liabilities, volatility in the Company’s stock price, risks from operating internationally, including fluctuations in currency exchange rates, increased competition, the Company’s offshore software development activities, customer reluctance to switch to a new vendor, the performance of the Company’s strategic product, BASE24-eps, the maturity of certain products, the Company’s strategy to migrate customers to its next generation products, ratable or deferred recognition of certain revenue associated with customer migrations and the maturity of certain of the Company’s products, demand for the Company’s products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, business interruptions or failure of our information technology and communication systems, our alliance with International Business Machines Corporation (“IBM”), the Company’s outsourcing agreement with IBM, the complexity of its products and services and the risk that they may contain hidden defects or be subjected to security breaches or viruses, compliance of the Company’s products with applicable legislation, governmental regulations and industry standards, the Company’s compliance with privacy regulations, the protection of the Company’s intellectual property in intellectual property litigation, future acquisitions, strategic partnerships and investments and litigation.

Revenue Recognition, Accrued Receivables and Deferred Revenue

Software License Fees. The Company recognizes software license fee revenue in accordance with ASC 605-985, Revenue Recognition: Software. For software license arrangements for which services rendered are primarily related to installation of core software and are not considered essential to the functionality of the software, the Company recognizes revenue upon delivery, provided (i) there is persuasive evidence of an arrangement, (ii) collection of the fee is considered probable and (iii) the fee is fixed or determinable. In most arrangements, vendor-specific objective evidence (“VSOE”) of fair value does not exist for the license element; therefore, the Company uses the residual method under ASC 605-985 to determine the amount of revenue to be allocated to the license element. Under ASC 605-985, the fair value of all undelivered elements, such as post contract customer support (maintenance or “PCS”) or other products or services, is deferred and subsequently recognized as the products are delivered or the services are performed, with the residual difference between the total arrangement fee and revenues allocated to undelivered elements being allocated to the delivered element.

When a software license arrangement includes services to provide significant modification or customization of software, those services are considered essential to the functionality of the software and are not separable from the software. These arrangements are accounted for in accordance with ASC 605-35, Revenue Recognition: Long Term Construction Type Contracts generally referred to as contract accounting. Under contract accounting, the Company generally uses the percentage-of-completion method. For those contracts subject to percentage-of-completion contract accounting, estimates of total revenue and profitability under the contract consider amounts due under extended payment terms. The Company recognizes revenue under these arrangements based on the lesser of payments that become due or the revenue calculated under the percentage-of-completion method. Under the percentage-of-completion method, the Company records revenue for the software license fee and services over the development and implementation period, with the percentage of completion generally measured by the percentage of labor hours incurred to-date to estimated total labor hours for each contract. In the event project profitability is assured and estimable within a range, percentage-of-completion revenue recognition is computed using the lowest level of profitability in the range. If the range of profitability is not estimable but some level of profit is assured, revenues are recognized to the extent direct and indirect costs are incurred until such time that project profitability can be estimated. In the event some level of profitability cannot be assured, completed-contract accounting is applied. If it is determined that a loss will result from the performance of a contract, the entire amount of the loss is recognized in the period in which it is determined that a loss will result.

For software license arrangements in which a significant portion of the fee is due more than 12 months after delivery or when payment terms are significantly beyond the Company’s standard business practice, the software license fee is deemed not to be fixed or determinable. For software license arrangements in which the fee is not considered fixed or determinable, the software license fee is recognized as revenue as payments become due and payable, provided all other conditions for revenue recognition have been met. For software license arrangements in which the Company has concluded that collection of the fees is not probable, revenue is recognized as cash is collected, provided all other conditions for revenue recognition have been met. In making the determination of collectability, the Company considers the creditworthiness of the customer, economic conditions in the customer’s industry and geographic location, and general economic conditions.

ASC 605-985 requires the seller of software that includes PCS to establish VSOE of fair value of the undelivered element of the contract in order to account separately for the PCS revenue. The Company establishes VSOE of the fair value of PCS by reference to stated renewals, expressed in dollar terms, or separate sales with consistent pricing of PCS expressed in percentage terms. In determining whether a stated renewal is not substantive, the Company considers factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal rate is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is consistent, the Company considers the population of separate sales that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period.

ASC 605-985 also requires the seller of software that includes services to establish VSOE of fair value of the undelivered element of the contract in order to account separately for the services revenue. The Company establishes VSOE of the fair value of services by reference to separate sales of comparable services with consistent pricing. In determining whether services pricing is consistent, the Company considers the population of separate sales that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period.

For those software license arrangements that include customer-specific acceptance provisions, such provisions are generally presumed to be substantive and the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance, objective demonstration that the delivered product meets the customer-specific acceptance criteria or the expiration of the acceptance period. The Company also defers the recognition of revenue on transactions involving less-established or newly released software products that do not have a history of successful implementation. The Company recognizes revenues on such arrangements upon the earlier of receipt of written acceptance or the first production use of the software by the customer. In the absence of customer-specific acceptance provisions, software license arrangements generally grant customers a right of refund or replacement only if the licensed software does not perform in accordance with its published specifications. If the Company’s product history supports an assessment by management that the likelihood of non-acceptance is remote, the Company recognizes revenue when all other criteria of revenue recognition are met.

For software license arrangements in which the Company acts as a sales agent for another company’s products, revenues are recorded on a net basis. These include arrangements in which the Company does not take title to the products, is not responsible for providing the product or service, earns a fixed commission, or assumes credit risk only to the extent of its commission. For software license arrangements in which the Company acts as a distributor of another company’s product, and in certain circumstances, modifies or enhances the product, revenues are recorded on a gross basis. These include arrangements in which the Company takes title to the products and is responsible for providing the product or service.

For software license arrangements in which the Company utilizes a third-party distributor or sales agent, the Company recognizes revenue on a sell-in basis when business practices and operating history indicate that there is no risk of returns, rebates, or credits and there are no other risks related to the distributor or sales agents ability to honor payment or distribution commitments. For other arrangements in which any of the above factors indicate that there are risks of returns, rebates, or credits or any other risks related to the distributor or sales agents ability to honor payment or distribution commitments, the Company recognizes revenue on a sell-through basis.

For software license arrangements in which the Company permits the customer to receive unspecified future software products during the software license term, the Company recognizes revenue ratably over the license term, provided all other revenue recognition criteria have been met. For software license arrangements in which the Company grants the customer a right to exchange the original software product for specified future software products with more than minimal differences in features, functionality, and/or price, during the license term, revenue is recognized upon the earlier of delivery of the additional software products or at the time the exchange right lapses. For customers granted a right to exchange the original software product for specified future software products where the Company has determined price, feature, and functionality differences are minimal, the exchange right is accounted for as a like-kind exchange and revenue is recognized upon delivery of the currently licensed product. For software license arrangements in which the customer has the right to change or alternate its use of currently licensed products, revenue is recognized upon delivery of the first copy of all of the licensed products, provided all other revenue recognition criteria have been met. For software license arrangements in which the customer is charged variable software license fees based on usage of the product, the Company recognizes revenue as usage occurs over the term of the licenses, provided all other revenue recognition criteria have been met.

Certain of the Company’s software license arrangements include PCS terms that fail to achieve VSOE of fair value due to non-substantive renewal periods, or contain a range of possible non-substantive PCS renewal amounts. As a result of the maturation of certain retail payment engine products, including BASE24, a higher number of software license arrangements fail to achieve VSOE of fair value for PCS due to non-substantive renewal periods, or contain a range of possible non-substantive PCS renewal amounts. For these arrangements, VSOE of fair value of PCS does not exist and revenues for the software license, PCS and services, if applicable, are considered to be one accounting unit and are therefore recognized ratably over the longer of the contractual service term of PCS term once the delivery of both services has commenced. The Company typically classifies revenues associated with these arrangements in accordance with the contractually specified amounts, which approximate fair value assigned to the various elements, including software license fees, maintenance fees and services, if applicable.

This allocation methodology has been applied to the following amounts included in revenues in the consolidated statements of operations from arrangements for which VSOE of fair value does not exist for each undelivered element (in thousands):


	Years Ended December 31,
	2010		2009		2008

Software license fees	$	47,095	$	13,905	$	18,212
Maintenance fees		10,261		5,273		6,494
Services		4,118		6,513		11,131

Total	$	61,474	$	25,691	$	35,837

Maintenance Fees. The Company typically enters into multi-year time-based software license arrangements that vary in length but are generally five years. These arrangements include an initial (bundled) PCS term of one year with subsequent renewals for additional years within the initial license period. For arrangements in which the Company looks to substantive renewal rates or separate sales with consistent pricing to evidence VSOE of fair value of PCS and in which the PCS renewal rate and term are substantive, VSOE of fair value of PCS is determined by reference to the stated renewal rate or by reference to the population of separate sales with consistent pricing. For these arrangements, PCS revenues are recognized ratably over the PCS term specified in the contract. In arrangements where VSOE of fair value of PCS cannot be determined (for example, a time-based software license with a duration of one year or less or when the range of possible PCS renewal amounts is not sufficiently narrow or is significantly below the Company’s normal pricing practices), the Company recognizes revenue for the entire arrangement ratably over the PCS term.

For those arrangements that meet the criteria to be accounted for under contract accounting, the Company determines whether VSOE of fair value exists for the PCS element. For those arrangements in which VSOE of fair value exists for the PCS element, PCS is accounted for separately and the balance of the arrangement is accounted for under ASC 605-985. For those arrangements in which VSOE of fair value does not exist for the PCS element all revenue is deferred until such time as the services are complete. Once services are complete, revenue is then recognized ratably over the remaining PCS period.

Services. The Company provides various professional services to customers, primarily project management, software implementation and software modification services. Revenues from arrangements to provide professional services are generally recognized as the related services are performed.

For those arrangements in which services revenue is deferred and the Company determines that the direct costs of services are recoverable, such costs are deferred and subsequently expensed in proportion to the related services revenue as it is recognized. For those arrangements that are accounted for under contract accounting, the Company accumulates and defers all direct and indirect costs allocable to the arrangement. For those arrangements that are not accounted for under contract accounting, the Company accumulates and defers all direct and incremental costs attributable to the arrangement.

Hosting. The Company’s hosting-related arrangements contain multiple products and services. As these arrangements generally do not contain a contractual right to take possession of the software at anytime during the hosting period without significant penalty, the Company applies the separation provisions of ASC 605-25, Revenue Recognition: Multiple Arrangements. The Company determines whether stand alone value exists for the delivered elements and whether reliable evidence of fair value exists for the undelivered elements of its hosting-related arrangements. For arrangements in which either of these criteria is not met, the elements do not qualify for treatment as separate units of accounting. These arrangements are considered to be one accounting unit and recognized under the proportional performance method, recognizing the slower of the proportional performance of all deliverables in the period.

Multiple Arrangements, The Company may execute more than one contract or agreement with a single customer. The separate contracts or agreements may be viewed as one multiple-element arrangement or separate agreements for revenue recognition purposes. The Company evaluates whether the agreements were negotiated as part of a single project, whether the products or services are interrelated or interdependent, whether fees in one arrangement are tied to performance in another arrangement, and whether elements in one arrangement are essential to the functionality in another arrangement in order to reach appropriate conclusions regarding whether such arrangements are related or separate. The conclusions reached can impact the timing of revenue recognition related to those arrangements.

Accrued Receivables. Accrued receivables represent amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as software license fee revenues that are determined to be fixed and determinable that are to be billed in future periods.

Deferred Revenue. Deferred revenue includes amounts currently due and payable from customers, and payments received from customers, for software licenses, maintenance and/or services in advance of recording the related revenue.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash equivalents includes holdings in checking, savings, money market and overnight sweep accounts, all of which have daily maturities, as well as time deposits with maturities of three months or less at the date of purchase. The carrying amounts of cash and cash equivalents on the consolidated balance sheets approximate fair value.

Concentrations of Credit Risk

In the normal course of business, the Company is exposed to credit risk resulting from the possibility that a loss may occur from the failure of another party to perform according to the terms of a contract. The Company regularly monitors credit risk exposures. Potential concentration of credit risk in the Company’s receivables with respect to the banking, other financial services and telecommunications industries, as well as with retailers, processors, and networks is mitigated by the Company’s credit evaluation procedures and geographical dispersion of sales transactions. The Company generally does not require collateral or other security to support accounts receivable.

The Company maintains a general allowance for doubtful accounts based on historical experience, along with additional customer-specific allowances. The Company regularly monitors credit risk exposures in accounts receivable. In estimating the necessary level of our allowance for doubtful accounts, management considers the aging of accounts receivable, the creditworthiness of customers, economic conditions within the customer’s industry, and general economic conditions, among other factors.

The following reflects activity in the Company’s allowance for doubtful accounts receivable (in thousands):


	Years Ended December 31,
	2010			2009			2008

Balance, beginning of period	$	2,732		$	1,920		$	1,723
Provision charged to general and administrative expense		3,116			1,171			564
Amounts written off, net of recoveries		(110	)		(359	)		(367	)

Balance, end of period	$	5,738		$	2,732		$	1,920

Amounts charged to general and administrative expenses during the years ended December 31, 2010, 2009 and 2008 reflect increases in the allowance for doubtful accounts based upon collection experience in the geographic regions in which the Company conducts business, net of collection of customer-specific receivables which were previously reserved for as doubtful of collection.

Property and Equipment

Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over the following estimated useful lives:


Computer and office equipment		3-5 years
Furniture and fixtures		7 years
Leasehold improvements		Lesser of useful life of improvement or remaining term of lease
Vehicles and other		4-5 years

Assets under capital leases are amortized over the shorter of the asset life or the lease term.

Software

Software may be for internal use or available for sale. Costs related to certain software, which is available for sale, are capitalized in accordance with ASC 985-20, Costs of Software to be Sold, Leased, or Marketed, when the resulting product reaches technological feasibility. The Company generally determines technological feasibility when it has a detailed program design that takes product function, feature and technical requirements to their most detailed, logical form and is ready for coding. The Company does not typically capitalize costs related to software available for sale as technological feasibility generally coincides with general availability of the software. Software for internal use is capitalized in accordance with ASC 605-985.

Amortization of software costs to be sold or marketed externally, begins when the product is available for licensing to customers and is determined on a product-by-product basis. The annual amortization shall be the greater of the amount computed using (a) the ratio of current gross revenues for a product to the total of current and anticipated future gross revenues for that product or (b) the straight-line method over the remaining estimated economic life of the product, including the period being reported on. Due to competitive pressures, it may be possible that the estimates of anticipated future gross revenue or remaining estimated economic life of the software product will be reduced significantly. As a result, the carrying amount of the software product may be reduced accordingly. Amortization of internal-use software is generally computed using the straight-line method over estimated useful lives of three years.

Goodwill and Other Intangibles

In accordance with ASC 350, Intangibles — Goodwill and Other, the Company assesses goodwill for impairment at least annually. During this assessment management relies on a number of factors, including operating results, business plans and anticipated future cash flows. The Company assesses potential impairments to other intangible assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered.

In accordance with ASC 350, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its reportable segments, Americas, Europe/Middle East/Africa (“EMEA”), and Asia/Pacific, as its reporting units. Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value.

The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors. Operational management, considering industry and Company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying value, impairment of the reporting unit may exist. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value was in excess of the current carrying value for all reporting units.

Other intangible assets are amortized using the straight-line method over periods ranging from 18 months to 12 years.

Impairment of Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group may not be recoverable. An impairment loss is recorded if the sum of the future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset. The amount of the impairment charge is measured based upon the fair value of the asset group.

Interest Rate Swap Agreements

The Company maintains an interest-rate risk-management strategy that uses interest rate swaps to mitigate the risk of variability in future cash flows (and related interest expense) associated with outstanding and forecasted floating rate bank borrowings due to changes in interest rates. The Company assesses interest rate cash flow risk by identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company monitors interest rate cash flow risk attributable to both the Company’s outstanding and forecasted debt obligations. The risk management involves the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on the Company’s future cash flows.

The variable-rate debt obligations expose the Company to variability in interest payments due to changes in interest rates. To limit the variability of a portion of its interest payments, the Company entered into interest rate swap agreements to manage fluctuations in cash flows resulting from interest rate risk. These swaps changed the variable-rate cash flow exposure on the debt obligations to fixed cash flows. Under the terms of the interest rate swaps, the Company received variable interest rate payments and made fixed interest rate payments, thereby creating the equivalent of fixed-rate debt. As of December 31, 2010, both swap agreements had terminated.

Treasury Stock

The Company accounts for shares of its common stock that are repurchased without intent to retire as treasury stock. Such shares are recorded at cost and reflected separately on the consolidated balance sheets as a reduction of stockholders’ equity. The Company issues shares of treasury stock upon exercise of stock options, payment of earned performance shares, and for issuances of common stock pursuant to the Company’s employee stock purchase plan. For purposes of determining the cost of the treasury shares re-issued, the Company uses the average cost method.

Stock-Based Compensation Plans

In accordance with ASC 718 Compensation — Stock Compensation, the Company recognizes stock-based compensation costs for only those shares expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount of expense recognized. Forfeiture estimates are revised, if necessary, in subsequent periods when actual forfeitures differ from those estimates. Share based compensation expense is recorded in operating expenses depending on where the respective individual’s compensation is recorded. The Company generally utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. The assumptions utilized in the Black-Scholes option-pricing model, as well as the description of the plans the stock-based awards are granted under, are described in further detail in Note 13, “Stock-Based Compensation Plans”.

Pursuant to the Company’s 2005 Equity and Performance Incentive Plan, as amended (the “2005 Incentive Plan”) during the years ended December 31, 2010 and 2009, the Company granted long-term incentive program performance share awards (“LTIP Performance Shares”) to key employees of the Company including named executive officers. These LTIP Performance Shares are earned, if at all, based upon the achievement, over a specified period that must not be less than one year and is typically a three-year period (the “Performance Period”), of performance goals related to (i) the compound annual growth over the Performance Period in the sales for the Company, as determined by the Company, and (ii) the cumulative operating income over the Performance Period as determined by the Company. In no event will any of the LTIP Performance Shares become earned if the Company’s sales growth or cumulative operating income is below a predetermined minimum threshold level at the conclusion of the Performance Period. Assuming achievement of the predetermined sales growth and cumulative operating income threshold levels, up to 200% of the LTIP Performance Shares may be earned upon achievement of performance goals equal to or exceeding the maximum target levels for the performance goals over the Performance Period. Management must evaluate, on a quarterly basis, the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment in order to determine the amount of compensation costs to record in the consolidated financial statements.

Pursuant to the Company’s 2005 Incentive Plan, the Company granted restricted share awards (“RSAs”). The awards granted during the year ended December 31, 2010 have requisite service periods of three years and vest in increments of 33% on the anniversary of the grant date. The awards granted during the years ended December 31, 2009 and 2008, have requisite service periods of four years and vest in increments of 25% on the anniversary of the grant date. Under each arrangement, stock is issued without direct cost to the employee. The Company estimates the fair value of the RSAs based upon the market price of the Company’s stock at the date of grant. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period (vesting period) and the participant has voting rights for each share of common stock. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period.

Translation of Foreign Currencies

The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into United States dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss).

Since the undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested, the components of accumulated other comprehensive income (loss) have not been tax effected.

Income Taxes

The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company periodically assesses its tax exposures and establishes, or adjusts, estimated unrecognized tax benefits for probable assessments by taxing authorities, including the Internal Revenue Service (“IRS”), and various foreign and state authorities. Such unrecognized tax benefits represent the estimated provision for income taxes expected to ultimately be paid.

Recently Issued Accounting Standards

In September 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2009-13 and ASU 2009-14, Revenue Recognition (Topic 605), Multiple Deliverable Revenue Arrangements, relating to revenue recognition for arrangements with multiple deliverables that do not fall under ASC 605-985. This guidance eliminates the requirement, for multiple element arrangements not subject to software accounting guidance, that all undelivered elements must have objective and reliable evidence of fair value before a company can recognize the portion of the overall arrangement fee that is attributable to items that already have been delivered. As a result, the new guidance may allow some companies to recognize revenue on transactions that involve multiple deliverables earlier than under current requirements. This guidance is effective for the Company on January 1, 2011. The Company does not expect this guidance will have a material impact on its financial statements.

In April 2010, the FASB issued ASU 2010-17, Revenue Recognition-Milestone method (Topic 605), that designates the milestone method and acceptable attribution method for revenue recognition. This further clarifies the conditions in which a company can recognize revenue under this method. The Company is does not expect this guidance to have a material impact on its financial statements.

Reclassifications

During the year ended December 31, 2010, the Company refined the classification of its revenues in order to better conform to industry practice and to better reflect the results of the Company’s on-demand business. The Company’s presentation of revenues has been revised to separately disclose software hosting fees, which includes all revenues from hosting and on-demand arrangements. Previously, these revenues were primarily included in services revenue with a smaller portion included in maintenance fees and software license fees. As a result of this change in classification of revenues, the Company reclassified $2.0 million, $5.8 million and $32.4 million from software license fees, maintenance fees, and services, respectively, to software hosting fees in the accompanying consolidated statement of operations for the year ended December 31, 2009. The Company reclassified $1.1 million, $4.9 million and $32.5 million from software license fees, maintenance fees, and services, respectively, to software hosting fees in the accompanying consolidated statement of operations for the year ended December 31, 2008.

These reclassifications have been made to prior periods to conform to the current period presentation. These reclassifications did not impact total revenue or net income for the prior years presented.

Acquisitions

12 Months Ended

Dec. 31, 2010

Acquisitions [Abstract]

Acquisitions


2.	Acquisitions

Fiscal 2009 Acquisition

Euronet Essentis Limited

On November 17, 2009, the Company acquired certain intellectual property, trade names, customer contracts and working capital of Euronet Essentis Limited (“Essentis”), a division of Euronet Worldwide, Inc. Essentis, based in Watford, England, is a provider of card issuing and merchant acquiring solutions around the world.

The aggregate purchase price of Essentis was 3.9 million British pounds sterling (approximately $6.6 million), after working capital adjustments as outlined in the purchase agreement. The allocation of the purchase price to specific assets and liabilities was based on the fair value of certain assets.

In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation during the fourth quarter of 2009 (in thousands, except weighted-average useful lives):


				Weighted-Average
	Amount			Useful Lives

Current assets	$	668
Noncurrent assets:
Property and equipment		302
Goodwill		1,539
Intellectual property rights		2,758			5 years
Customer contracts		1,999			9 years
Trade name		276			5 years

Total assets acquired		7,542

Current liabilities acquired		(968	)

Net assets acquired	$	6,574

Factors contributing to the purchase price which resulted in the goodwill (which is tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the company. Pro forma results are not presented because they are not material.

Property and Equipment

12 Months Ended

Dec. 31, 2010

Property and Equipment [Abstract]

Property and Equipment


3.	Property and Equipment

As of December 31, 2010 and 2009, net property and equipment, which includes assets under capital leases primarily in computer and office equipment, consisted of the following (in thousands):


	December 31,
	2010			2009

Computer and office equipment(1)	$	34,788		$	32,633
Furniture and fixtures		10,803			10,558
Leasehold improvements		6,708			6,624
Vehicles and other		306			135

		52,605			49,950
Less: accumulated depreciation and amortization		(34,066	)		(32,380	)

Property and equipment, net	$	18,539		$	17,570


(1)		Includes $4.2 million and $2.6 million of computer and office equipment under capital lease for the years ended December 31, 2010 and 2009, respectively.

Asset Retirement Obligations

We have contractual obligations with respect to the retirement of certain leasehold improvements at maturity of facility leases and the restoration of facilities back to their original state at the end of the lease term. Accruals are made based on management’s estimates of current market restoration costs, inflation rates, and discount rates. At the inception of a lease, the present value of the expected cash payment is recognized as an asset retirement obligation with a corresponding amount recognized in property assets. The property asset amount is amortized, and the liability is accreted, over the period from lease inception to the time we expect to vacate the premises resulting in both depreciation and interest charges in the consolidated statement of operations. Discount rates used are based on credit-adjusted risk-free interest rates. Based on our current lease commitments, obligations are required to be settled commencing during fiscal year 2011 and ending during fiscal year 2016. Revisions to these obligations may be required if our estimates of restoration costs change. At December 31, 2010 and 2009, we had obligations of $1.8 million and $1.7 million, respectively, recorded in other non-current liabilities in the accompanying consolidated balance sheet.

Goodwill

12 Months Ended

Dec. 31, 2010

Goodwill [Abstract]

Goodwill


4.	Goodwill

Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the years ended December 31, 2010 and 2009, were as follows (in thousands):


	Americas			EMEA			Asia/Pacific		Total

Gross Balance prior to December 31, 2008	$	186,762		$	43,383		$	17,273	$	247,418
Total impairment prior to December 31, 2008		(47,432	)		—			—		(47,432	)

Balance, December 31, 2008		139,330			43,383			17,273		199,986
Foreign currency translation adjustments		479			1,924			449		2,852
Additions — Stratasoft(1)		—			—			473		473
Additions — acquisition of Essentis(2)		—			1,539			—		1,539

Balance, December 31, 2009		139,809			46,846			18,195		204,850
Foreign currency translation adjustments		121			(2,596	)		1,560		(915	)

Balance, December 31, 2010	$	139,930		$	44,250		$	19,755	$	203,935


(1)		Adjustment to Stratasoft Sdn Bhd acquisition relates to earn out payment made in accordance with the purchase agreement. There are no remaining earn out provisions.

(2)		Addition relates to goodwill acquired during the acquisition of Essentis.

During the years ended December 31, 2010 and 2009, the Company performed an impairment test for each reporting unit. No impairment losses were recognized for the years reported.

Software and Other Intangible Assets

12 Months Ended

Dec. 31, 2010

Software and Other Intangible Assets [Abstract]

Software and Other Intangible Assets


5.	Software and Other Intangible Assets

At December 31, 2010, software net book value totaled $25.4 million, net of $48.1 million of accumulated amortization. Included in this amount is software marketed for external sale of $13.5 million. The remaining software net book value of $11.9 million is comprised of various software that has been acquired or developed for internal use.

Amortization of acquired software marketed for external sale is computed using the greater of the ratio of current revenues to total current and anticipated revenues expected to be derived from the software or the straight-line method over an estimated useful life of generally three to six years. Software for resale amortization expense recorded during the years ended December 31, 2010, 2009 and 2008 totaled $6.0 million, $5.7 million, and $5.4 million, respectively. These software amortization expense amounts are reflected in cost of software license fees in the consolidated statements of operations. Amortization of software for internal use recorded during the years ended December 31, 2010, 2009 and 2008 totaled $7.4 million, $5.5 million, and $3.7 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the consolidated statements of operations.

The carrying amount and accumulated amortization of the Company’s other intangible assets that were subject to amortization at each balance sheet date are as follows (in thousands):


	December 31, 2010							December 31, 2009
	Gross							Gross
	Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Amount		Amortization			Balance		Amount		Amortization			Balance

Customer relationships	$	36,393	$	(18,855	)	$	17,538	$	41,636	$	(19,727	)	$	21,909
Purchased contracts		10,753		(8,504	)		2,249		11,179		(7,030	)		4,149
Trademarks and tradenames		1,062		(422	)		640		2,526		(1,711	)		815
Covenant not to compete		83		(62	)		21		74		(41	)		33

	$	48,291	$	(27,843	)	$	20,448	$	55,415	$	(28,509	)	$	26,906

Other intangible assets amortization expense recorded during the years ended December 31, 2010, 2009 and 2008 totaled $6.3 million, $6.1 million, and $6.4 million, respectively. Based on capitalized intangible assets at December 31, 2010, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands):


	Software		Other Intangible
Fiscal Year Ending December 31,	Amortization		Assets Amortization

2011	$	12,303	$	5,962
2012		8,785		4,889
2013		2,734		4,642
2014		1,421		2,869
2015		123		965
Thereafter		—		1,121

Total	$	25,366	$	20,448

Debt

12 Months Ended

Dec. 31, 2010

Debt [Abstract]

Debt


6.	Debt

Credit Facility

On September 29, 2006, the Company entered into a five year revolving credit facility with a syndicate of financial institutions, as lenders, providing for revolving loans and letters of credit in an aggregate principal amount not to exceed $150 million. The Company has the option to increase the aggregate principal amount to $200 million. The facility has a maturity date of September 29, 2011, at which time any principal amounts outstanding are due. Obligations under the facility are unsecured and uncollateralized, but are jointly and severally guaranteed by certain domestic subsidiaries of the Company. As of December 31, 2010, the revolving credit facility has been classified as current due to the maturity date being with 12 months.

The Company may select either a base rate loan or a LIBOR based loan. Base rate loans are computed at the national prime interest rate plus a margin ranging from 0% to 0.125%. LIBOR based loans are computed at the applicable LIBOR rate plus a margin ranging from 0.625% to 1.375%. The margins are dependent upon the Company’s total leverage ratio at the end of each quarter. The initial borrowing rate on September 29, 2006 was set using the base rate option, effecting a rate of 8.25%. Interest is due and payable monthly.

On October 5, 2006, the Company exercised its right to convert the rate on its initial borrowing to the LIBOR based option, thereby reducing the effective interest rate to 6.12%. The interest rate in effect at December 31, 2010 was 1.02%. On July 18, 2007 the Company entered into an interest rate swap with a commercial bank to fix the interest rate. See Note 7, “Derivative Instruments and Hedging Activities”, for details. There is also an unused commitment fee to be paid annually of 0.15% to 0.3% based on the Company’s leverage ratio. The initial principal borrowings of $75 million were outstanding at December 31, 2010. The amount of unused borrowings actually available under the revolving credit facility varies in accordance with the terms of the agreement. In connection with the borrowing, the Company incurred debt issue costs of $1.7 million.

The credit facility contains certain affirmative and negative covenants including certain financial measurements. The facility also provides for certain events of default. At December 31, 2010 and December 31, 2009, (and at all times during these periods) the Company was in compliance with its debt covenants. The facility does not contain any subjective acceleration features and does not have any required payment or principal reduction schedule and is included as current in the accompanying consolidated balance sheet.

On August 27, 2007, the Company entered into an amendment to its credit agreement with its lenders, which amended the definition of consolidated EBITDA, as it relates to the calculation for the Company’s debt covenants, to exclude certain non-recurring items, and to incorporate the change in the Company’s fiscal year end to a calendar year, effective January 1, 2008.

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2010

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities


7.	Derivative Instruments and Hedging Activities

The Company had two interest rate swaps that terminated on October 4, 2010, neither swap qualified for hedge accounting. Accordingly, the loss resulting from the change in the fair value of the interest rate swaps of $0.2 million, $1.6 million, and $5.8 million for the years ended December 31, 2010, 2009 and 2008, respectively, is reflected as expense in other income (expense), net in the accompanying consolidated statements of operations.

Changes in the fair value of the interest rate swaps were as follows (in thousands):


	Asset
	(Liability)

Fair value, December 31, 2008	$	(8,624	)
Net settlement payments		4,993
Loss recognized in earnings		(1,640	)

Fair value, December 31, 2009		(5,271	)
Net settlement payments		5,424
Loss recognized in earnings		(153	)

Fair value, December 31, 2010	$	—

As both interest rate swaps terminated on October 4, 2010, as of December 31, 2010, there was no liability reported in the accompanying consolidated balance sheet.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2010

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments


8.	Fair Value of Financial Instruments

Effective January 1, 2008, the Company adopted the provisions of ASC 820, Fair Value Measurements and Disclosures, for financial assets and financial liabilities. ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:


	•	Level 1 Inputs — Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.


	•	Level 2 Inputs — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

	•	Level 3 Inputs — Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The Company utilizes valuation models prepared by a third-party with observable market data inputs to assist management in estimating the fair value of its interest rate swaps.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):


	Fair Value Measurements at
	Reporting Date Using
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)

Derivative liabilities	$	—	$	5,271	$	—

Total liabilities as of December 31, 2009	$	—	$	5,271	$	—

Derivative liabilities	$	—	$	—	$	—

Total liabilities as of December 31, 2010	$	—	$	—	$	—

As discussed in Note 7, “Derivative Instruments and Hedging Activities”, the Company’s interest rate swaps terminated on October 4, 2010. The Company has no other derivatives.

Certain non-financial assets and non-financial liabilities measured at fair value on a recurring basis include reporting units measured at fair value in the first step of a goodwill impairment test. Certain non-financial assets measured at fair value on a non-recurring basis include non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, as well as intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

The Company pays interest quarterly on its revolving credit facility based upon the LIBOR rate plus a margin ranging from 0.625% to 1.375%, the margin being dependent upon the Company’s total leverage ratio at the end of the quarter. At December 31, 2010, the fair value of the Company’s revolving credit facility approximates its carrying value.

Corporate Restructuring and Other Reorganization Charges

12 Months Ended

Dec. 31, 2010

Corporate Restructuring and Other Reorganization Charges [Abstract]

Corporate Restructuring and Other Reorganization Charges


9.	Corporate Restructuring and Other Reorganization Charges

The Company summarizes the components of corporate restructuring and other reorganization charges in the following table (amounts in thousands):


	Termination
	Benefits

Balance, December 31, 2008	$	2,547
Additional restructuring charges incurred		2,870
Adjustments to recognized liabilities		181
Amounts paid during the period		(5,155	)
Other(1)		(131	)

Balance, December 31, 2009	$	312
Amounts paid during the period		(312	)

Balance, December 31, 2010	$	—


(1)		Other includes the impact of foreign currency translation.

See Note 19, “International Business Machines Corporation Information Technology Outsourcing Agreement” for additional severance charges incurred.

2010

During the year ended December 31, 2010, the Company paid the remaining restructuring liability of $0.3 million outstanding at December 31, 2009.

2009

During the year ended December 31, 2009, the Company reduced its headcount by 120 employees as a part of its plan to reduce operating expenses. In connection with these actions, during the year ended December 31, 2009, approximately $2.9 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statement of operations. The charges, by segment, were as follows for the year ended December 31, 2009: $1.5 million in the Americas segment, $1.1 million in the EMEA segment, and $0.3 million in the Asia/Pacific segment. Approximately $2.6 million of these termination costs were paid during the year ended December 31, 2009.

Common Stock, Treasury Stock and Earnings Per Share

12 Months Ended

Dec. 31, 2010

Common Stock, Treasury Stock and Earnings (Loss) Per Share [Abstract]

Common Stock, Treasury Stock and Earnings (Loss) Per Share


10.	Common Stock, Treasury Stock and Earnings Per Share

The Company’s board of directors has approved a stock repurchase program authorizing the Company, from time to time as market and business conditions warrant, to acquire up to $210 million of its common stock. Under the program to date, the Company has purchased approximately 8,082,180 shares for approximately $187.1 million. During the year ended December 31, 2010, the Company purchased 1.0 million shares of common stock under this repurchase plan for approximately $18.6 million. The maximum remaining dollar value of shares authorized for purchase under the stock repurchase program was approximately $22.9 million as of December 31, 2010.

During the year ended September 30, 2006, the Company began to issue shares of treasury stock upon exercise of stock options, payment of earned performance shares, issuance of restricted stock awards and for issuances of common stock pursuant to the Company’s employee stock purchase plan. Treasury shares issued during the year ended December 31, 2008 included 311,640 and 471,400 shares issued pursuant to stock option exercises and restricted share award grants, respectively. Treasury shares issued during the year ended December 31, 2009 included 150,134 and 23,500 shares issued pursuant to stock option exercises and restricted share award grants, respectively. Treasury shares issued during the year ended December 31, 2010 included 235,986 and 25,950 shares issued pursuant to stock option exercises and restricted share award grants, respectively.

Earnings per share is computed in accordance with ASC 260, Earnings per Share. Basic earnings per share is computed on the basis of weighted average outstanding common shares. Diluted earnings per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities.

The following table reconciles the average share amounts used to compute both basic and diluted earnings (loss) per share (in thousands):


	Years Ended December 31,
	2010		2009		2008

Weighted average share outstanding:
Basic weighted average shares outstanding		33,560		34,368		34,498
Add: Dilutive effect of stock options, restricted stock awards and other dilutive securities		310		186		297

Diluted weighted average shares outstanding		33,870		34,554		34,795

For the year ended December 31, 2010, 5.4 million options to purchase shares, contingently issuable shares, and common stock warrants were excluded from the diluted net income per share computation as their effect would be anti-dilutive. For the year ended December 31, 2009, 5.6 million options to purchase shares, contingently issuable shares, and common stock warrants were excluded from the diluted net income per share computation as their effect would be anti-dilutive. For the year ended December 31, 2008, 5.8 million options to purchase shares and contingently issuable shares and common stock warrants were excluded from the diluted net income as their effect would be anti-dilutive.

Other Income/Expense

12 Months Ended

Dec. 31, 2010

Other Income/Expense [Abstract]

Other Income/Expense


11.	Other Income/Expense

Other income (expense) is comprised of the following items (in thousands):


	Years Ended December 31,
	2010			2009			2008

Foreign currency transaction gains (losses)	$	(3,216	)	$	(5,275	)	$	13,814
Loss on interest rate swaps		(153	)		(1,640	)		(5,800	)
Gain on transfer of assets under under contractual obligations (Note 16)		—			1,049			219
Other		(246	)		(782	)		14

Total	$	(3,615	)	$	(6,648	)	$	8,247

Segment Information

12 Months Ended

Dec. 31, 2010

Segment Information [Abstract]

Segment Information


12.	Segment Information

The Company’s chief operating decision maker, together with other senior management personnel, currently focus their review of consolidated financial information and the allocation of resources based on reporting of operating results, including revenues and operating income, for the geographic regions of the Americas, EMEA and Asia/Pacific. The Company’s products are sold and supported through distribution networks covering these three geographic regions, with each distribution network having its own sales force. The Company supplements its distribution networks with independent reseller and/or distributor arrangements. As such, the Company has concluded that its three geographic regions are its reportable operating segments.

The Company’s chief operating decision makers review financial information presented on a consolidated basis, accompanied by disaggregated information about revenues and operating income by geographical region.

The Company allocated segment support expenses such as global product delivery, business operations, and management based upon percentage of revenue per segment. Corporate costs are allocated as a percentage of the headcount by segment. The following is selected segment financial data for the periods indicated (in thousands):


	Years Ended December 31,
	2010			2009			2008

Revenues:
Americas	$	221,560		$	222,952		$	207,350
EMEA		150,525			137,061			169,046
Asia/Pacific		46,339			45,742			41,257

	$	418,424		$	405,755		$	417,653

Depreciation and amortization expense:
Americas	$	13,804		$	15,759		$	15,705
EMEA		7,067			4,986			4,566
Asia/Pacific		5,476			2,982			1,779

	$	26,347		$	23,727		$	22,050

Stock-based compensation expense:
Americas	$	3,828		$	3,804		$	3,895
EMEA		1,991			2,165			2,689
Asia/Pacific		1,971			1,676			1,304

	$	7,790		$	7,645		$	7,888

Operating income (loss):
Americas	$	49,195		$	42,344		$	21,714
EMEA		21,310			6,963			2,140
Asia/Pacific		(16,857	)		(7,737	)		(2,141	)

	$	53,648		$	41,570		$	21,713


	December 31,
	2010		2009

Long-lived assets:
Americas — United States	$	189,389	$	184,295
Americas — Other		4,547		4,306
EMEA		59,494		79,491
Asia/Pacific		25,147		21,865

	$	278,577	$	289,957


	December 31,
	2010		2009

Total assets:
Americas — United States	$	335,457	$	345,304
Americas — Other		21,254		15,718
EMEA		186,209		187,356
Asia/Pacific		58,609		41,665

	$	601,529	$	590,043

Additionally, the Company offers five primary software product lines that are sold in each of the geographic regions listed above. Following are revenues, by product line (in thousands):


	Years Ended December 31,
	2010		2009		2008

Retail payment engines	$	255,536	$	255,193	$	263,641
Wholesale payments		86,524		72,608		78,857
Risk management		22,039		25,521		17,058
Payments management/Back Office		19,240		15,272		18,871
Application services solutions		35,085		37,161		39,226

Total	$	418,424	$	405,755	$	417,653

During the years ended December 31, 2010 and 2009 and 2008, approximately 46%, 46%, and 47%, respectively, of the Company’s total revenues were derived from licensing the BASE24 product line, which does not include the BASE24-eps product, and providing related services and maintenance.

No country outside of the United States accounted for more than 10% of the Company’s consolidated revenues during the year ended December 31, 2010 and 2009. Aggregate revenues attributable to customers in the United Kingdom accounted for 12.7% of the Company’s consolidated revenues during the year ended December 31, 2008. No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2010, 2009 and 2008.

During the years ended December 31, 2010, 2009 and 2008, revenues in the United States were approximately $163.1 million, $172.7 million and $156.6 million, respectively.

Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2010

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans


13.	Stock-Based Compensation Plans

Employee Stock Purchase Plan

Under the Company’s 1999 Employee Stock Purchase Plan (the “ESPP”), a total of 1,500,000 shares of the Company’s common stock have been reserved for issuance to eligible employees. Participating employees are permitted to designate up to the lesser of $25,000, or 10% of their annual base compensation, for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. The price for shares of common stock purchased under the ESPP is 85% of the stock’s fair market value on the last business day of the three-month participation period. Shares issued under the ESPP during the years ended December 31, 2010, 2009 and 2008, totaled 57,734, 77,011, and 101,671, respectively.

Additionally, the discount offered pursuant to the Company’s ESPP discussed above is 15%, which exceeds the 5% non-compensatory guideline in ASC 718 and exceeds the Company’s estimated cost of raising capital. Consequently, the entire 15% discount to employees is deemed to be compensatory for purposes of calculating expense using a fair value method. Compensation cost related to the ESPP for each of the years ended December 31, 2010, 2009 and 2008 was approximately $0.2 million.

On July 24, 2007, the Company’s stockholders approved a proposal to amend the ESPP to extend the term of the ESPP by ten years to April 30, 2018. The term of the amended ESPP commenced May 1, 2008 and continues until April 30, 2018 subject to earlier termination by the Company’s board of directors.

Stock Incentive Plans — Active Plans

The Company has a 2005 Equity and Performance Incentive Plan, as amended (the “2005 Incentive Plan”), under which shares of the Company’s common stock have been reserved for issuance to eligible employees or non-employee directors of the Company. The 2005 Incentive Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, performance awards and other awards. The maximum number of shares of the Company’s common stock that may be issued or transferred in connection with awards granted under the 2005 Incentive Plan is the sum of (i) 5,000,000 shares and (ii) any shares represented by outstanding options that had been granted under designated terminated stock option plans that are subsequently forfeited, expire or are canceled without delivery of the Company’s common stock.

On July 24, 2007, the stockholders of the Company approved the First Amendment to the 2005 Incentive Plan which increased the number of shares authorized for issuance under the plan from 3,000,000 to 5,000,000 and contained certain other amendments, including an amendment to provide that the exercise price for any options granted under the 2005 Incentive Plan, as amended, may not be less than the market value per share of common stock on the date of grant.

Stock options granted pursuant to the 2005 Incentive Plan are granted at an exercise price not less than the market value per share of the Company’s common stock on the date of the grant. Prior to the adoption of the First Amendment to the 2005 Incentive Plan, stock options granted under the 2005 Incentive Plan were granted with an exercise price not less than the market value per share of common stock on the date immediately preceding the date of grant. Under the 2005 Incentive Plan, the term of the outstanding options may not exceed ten years. Vesting of options is determined by the Compensation Committee of the Board of Directors, the administrator of the 2005 Incentive Plan, and can vary based upon the individual award agreements.

Performance awards granted pursuant to the 2005 Incentive Plan become payable upon the achievement of specified management objectives. Each performance award specifies: (i) the number of performance shares or units granted, (ii) the period of time established to achieve the management objectives, which may not be less than one year from the grant date, (iii) the management objectives and a minimum acceptable level of achievement as well as a formula for determining the number of performance shares or units earned if performance is at or above the minimum level but short of full achievement of the management objectives, and (iv) any other terms deemed appropriate.

Restricted stock awards granted pursuant to the 2005 Incentive Plan have requisite service periods of three and four years and vest in increments of 33% and 25%, respectively, on the anniversary of the grant date. Under each arrangement, stock is issued without direct cost to the employee.

Upon adoption of the 2005 Incentive Plan in March 2005, the Board terminated the following stock option plans of the Company: (i) the 2002 Non-Employee Director Stock Option Plan, as amended, (ii) the MDL Amended and Restated Employee Share Option Plan, as amended (iii) the 2000 Non-Employee Director Stock Option Plan, as amended (iv) the 1997 Management Stock Option Plan, as amended (v) the 1996 Stock Option Plan, as amended; and (vi) the 1994 Stock Option Plan, as amended. Termination of these stock option plans did not affect any options outstanding under these plans immediately prior to termination thereof.

Exchange Program

On August 1, 2001, the Company announced a voluntary stock option exchange program (the “Exchange Program”) offering to exchange all outstanding options to purchase shares of the Company’s common stock granted under the 1994 Stock Option Plan, 1996 Stock Option Plan and 1999 Stock Option Plan held by eligible employees or eligible directors for new options under the same option plans by August 29, 2001. The Exchange Program required any person tendering an option grant for exchange to also tender all subsequent option grants with a lower exercise price received by that person during the six months immediately prior to the date the options accepted for exchange are cancelled. Options to acquire a total of 3,089,100 shares of common stock with exercise prices ranging from $2.50 to $45.00 were eligible to be exchanged under the Exchange Program. The offer expired on August 28, 2001, and the Company cancelled 1,946,550 shares tendered by 578 employees. As a result of the Exchange Program, the Company granted replacement stock options to acquire 1,823,000 shares of common stock at an exercise price of $10.04. The difference between the number of shares cancelled and the number of shares granted relates to options cancelled by employees who terminated their employment with the Company between the cancellation date and regrant date. With the exception of three employee grants, the exercise price of the replacement options was the fair market value of the common stock on the grant date of the new options, which was March 4, 2002 (a date at least six months and one day after the date of cancellation). Under ASC 718, non-cash, stock based compensation expense was recognized for any option for which the exercise price was below the market price on the applicable measurement date. This expense was amortized over the service periods of the options. For three employees, the cancellation of their awards were within the six months and one day waiting period and were, therefore, treated as variable awards when they were reissued on March 4, 2002. Under the variable method, charges are taken each reporting period to reflect increases in the fair value of the stock over the option exercise price until the stock option is exercised or otherwise cancelled. The new shares had a service period of 18 months beginning on the grant date of the new options, except for options tendered by executive officers under the 1994 Stock Option Plan, which vested 25% annually on each anniversary of the grant date of the new options. The Exchange Program was designed to comply with ASC 718 for fixed plan accounting.

Stock Incentive Plans — Terminated Plans with Options Outstanding

The Company had a 2002 Non-Employee Director Stock Option Plan that was terminated in March 2005 whereby 250,000 shares of the Company’s common stock had been reserved for issuance to eligible non-employee directors of the Company. The term of the outstanding options is ten years. All outstanding options under this plan are fully vested.

The Company had a 1999 Stock Option Plan, as amended, that expired in February 2009 whereby 4,000,000 shares of the Company’s common stock had been reserved for issuance to eligible employees of the Company and its subsidiaries. The term of the outstanding options is 10 years. The options generally vest annually over a period of three or four years. All outstanding options under this plan are fully vested.

The Company had a 1996 Stock Option Plan that was terminated in March 2005 whereby 1,008,000 shares of the Company’s common stock had been reserved for issuance to eligible employees of the Company and its subsidiaries and non-employee members of the board of directors. The term of the outstanding options is ten years. The options generally vest annually over a period of four years.

The Company had a 1994 Stock Option Plan that was terminated in March 2005 whereby 1,910,976 shares of the Company’s common stock had been reserved for issuance to eligible employees of the Company and its subsidiaries. The term of the outstanding options is ten years. The stock options vest ratably over a period of four years.

A summary of stock options issued under the various Stock Incentive Plans previously described and changes is as follows:


						Weighted-
						Average
				Weighted-		Remaining		Aggregate
				Average		Contractual		Intrinsic Value
	Number of			Exercise		Term		of In-the-Money
	Shares			Price ($)		(Years)		Options ($)

Outstanding, December 31, 2007		3,590,325		$	22.43
Granted		551,700			17.46
Exercised		(311,640	)		12.33
Forfeited		(307,866	)		31.58
Expired		(94,222	)		23.48

Outstanding, December 31, 2008		3,428,297			21.69
Granted		505,183			16.17
Exercised		(150,134	)		12.06
Forfeited		(125,606	)		31.98
Expired		(100,867	)		29.82

Outstanding, December 31, 2009		3,556,873			20.72
Granted		338,950			24.48
Exercised		(235,986	)		13.34
Forfeited		(106,625	)		18.11
Expired		(42,674	)		30.31

Outstanding, December 31, 2010		3,510,538		$	21.55		5.61	$	22,863,742
Exercisable, December 31, 2010		2,252,013		$	21.46		4.74	$	15,997,657

At December 31, 2010 we expect that 94% of options granted will vest over the vesting period.

The weighted-average grant date fair value of stock options granted during the years ended December 31, 2010, 2009, and 2008 was $12.22, $8.59, and $9.62, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2010, 2009 and 2008 was $1.9 million, $0.8 million, and $1.7 million, respectively.

The fair value of options granted in the respective fiscal years was estimated on the date of grant using the Black-Scholes option-pricing model, a pricing model acceptable under ASC 718, with the following weighted-average assumptions:


	Years Ended December 31,
	2010			2009			2008

Expected life (years)		5.9			6.0			6.2
Risk-free interest rate		2.3	%		3.0	%		3.1	%
Expected volatility		50.8	%		53.2	%		54.9	%
Expected dividend yield		—			—			—

Expected volatilities are based on the Company’s historical common stock volatility derived from historical stock price data for historic periods commensurate with the options’ expected life. The expected life of options granted represents the period of time that options granted are expected to be outstanding. The Company used the simplified method for determining the expected life as permitted under ASC 718. The simplified method was used as the historical data did not provide a reasonable basis upon which to estimate the expected term. This is due to the extended period during which individuals were unable to exercise options while the Company was not current with its filings with the SEC. The risk-free interest rate is based on the implied yield currently available on United States Treasury zero coupon issues with a term equal to the expected life at the date of grant of the options. The expected dividend yield is zero as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future.

During the year ended September 30, 2007, pursuant to the Company’s 2005 Incentive Plan, the Company granted long-term incentive program performance share awards (“LTIP Performance Shares”). These LTIP Performance Shares would have been earned based upon the achievement, over a three-year performance period, of performance goals related to (i) the compound annual growth over the performance period in the Company’s 60-month backlog as determined and defined by the Company, (ii) the compound annual growth over the performance period in the diluted earnings per share as reported in the Company’s consolidated financial statements, and (iii) the compound annual growth over the performance period in the total revenues as reported in the Company’s consolidated financial statements. In no event would any of the LTIP Performance Shares become earned if the Company’s earnings per share was below a predetermined minimum threshold level at the conclusion of the performance period. Assuming achievement of the predetermined minimum earnings per share threshold level, up to 150% of the LTIP Performance Shares could have been earned upon achievement of performance goals equal to or exceeding the maximum target levels for compound annual growth over the performance period in the Company’s 60-month backlog, diluted earnings per share and total revenues. Management evaluated, on a quarterly basis, the probability that the target performance goals would be achieved, if at all, and the anticipated level of attainment in order to determine the amount of compensation costs to record in the consolidated financial statements.

Through September 30, 2008, the Company had accrued compensation costs assuming an attainment level of 100% for the awards granted during the year ended September 30, 2007. During the three months ended December 31, 2008, the Company changed the expected attainment to 0% based upon revised forecasted diluted earnings per share, which the Company did not expect to achieve the predetermined earnings per share minimum threshold level required for the LTIP Performance Shares granted in 2007 to be earned. As the performance goals were considered improbable of achievement, the Company reversed compensation costs related to the awards granted in fiscal 2007 during the three months ended December 31, 2008. These awards expired on December 31, 2009 without vesting.

During the years ended December 31, 2010 and 2009, pursuant to the Company’s 2005 Incentive Plan, the Company granted LTIP Performance Shares. These LTIP Performance Shares are earned, if at all, based upon the achievement, over a specified period that must not be less than one year and is typically a three-year performance period, of performance goals related to (i) the compound annual growth over the performance period in the sales for the Company as determined by the Company, and (ii) the cumulative operating income over the performance period as determined by the Company. In no event will any of the LTIP Performance Shares become earned if the Company’s sales growth or cumulative operating income is below a predetermined minimum threshold level at the conclusion of the performance period. Assuming achievement of the predetermined sales growth and cumulative operating income threshold levels, up to 200% of the LTIP Performance Shares may be earned upon achievement of performance goals equal to or exceeding the maximum target levels for the performance goals over the performance period. Management must evaluate, on a quarterly basis, the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment in order to determine the amount of compensation costs to record in the consolidated financial statements.

During the three months ended December 31, 2010, the Company revised the expected attainment for the awards granted in fiscal 2009 from 100% to 150% due to changes in forecasted sales and operating income. This change resulted in additional compensation expense of approximately $0.5 million. The expected attainment level for the awards granted in fiscal 2010 is 100%.

A summary of the nonvested LTIP Performance Shares is as follows:


	Number of			Weighted-
	Shares at			Average
	Expected			Grant Date
Nonvested LTIP Performance Shares	Attainment			Fair Value

Nonvested at December 31, 2007		174,947		$	34.25
Change in expected attainment for 2007 grants		(139,891	)		34.24
Forfeited or expired		(35,056	)		34.30

Nonvested at December 31, 2008		—			—
Granted		216,150			16.52

Nonvested at December 31, 2009		216,150			16.52
Granted		207,180			26.29
Forfeited or expired		(25,620	)		16.52
Change in expected attainment for 2009 grants		101,325			16.52

Nonvested at December 31, 2010		499,035		$	20.57

During the years ended December 31, 2010, 2009 and 2008, pursuant to the Company’s 2005 Incentive Plan, the Company granted restricted share awards (“RSAs”). The awards granted during the year ended December 31, 2010 have requisite service periods of three years and vest in increments of 33% on the anniversary of the grant dates. The awards granted during the years ended December 31, 2009 and 2008, have requisite service periods of four years and vest in increments of 25% on the anniversary of the grant dates. Under each arrangement, stock is issued without direct cost to the employee. The Company estimates the fair value of the RSAs based upon the market price of the Company’s stock at the date of grant. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period (vesting period) and the participant has voting rights for each share of common stock. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period.

A summary of nonvested RSAs are as follows:


	Number of
	Restricted			Weighted-Average Grant
Nonvested Restricted Share Awards	Share Awards			Date Fair Value

Nonvested at December 31, 2007		—		$	—
Granted		471,400			17.95
Forfeited or expired		(9,000	)		17.17

Nonvested at December 31, 2008		462,400			17.97
Granted		23,500			16.65
Vested		(115,602	)		17.97
Forfeited or expired		(55,750	)		17.54

Nonvested at December 31, 2009		314,548			17.94
Granted		25,950			22.19
Vested		(95,014	)		17.81
Forfeited or expired		(53,186	)		18.52

Nonvested at December 31, 2010		192,298		$	18.42

As of December 31, 2010, there were unrecognized compensation costs of $6.8 million related to nonvested stock options that the Company expects to recognize over a weighted-average period of 2.2 years. As of December 31, 2010, there were unrecognized compensation costs of $2.5 million related to nonvested RSAs that the Company expects to recognize over a weighted-average period of 1.8 years. As of December 31, 2010, there were unrecognized compensation costs of $7.8 million related to nonvested LTIPs that the Company expects to recognize over a weighted-average period of 2.5 years.

The Company recorded stock-based compensation expenses recognized under ASC 718 during the years ended December 31, 2010, 2009 and 2008 related to stock options, LTIP Performance Shares, RSAs, and the ESPP of $7.8 million, $7.6 million, and $7.9 million, respectively, with corresponding tax benefits of $2.9 million, $3.0 million, and $3.6 million, respectively. Tax benefits in excess of the option’s grant date fair value are classified as financing cash flows. Estimated forfeiture rates, stratified by employee classification, have been included as part of the Company’s calculations of compensation costs. The Company recognizes compensation costs for stock option awards which vest with the passage of time with only service conditions on a straight-line basis over the requisite service period.

Cash received from option exercises for the year ended December 31, 2010, 2009 and 2008 was $3.1 million, $1.8 million and $3.8 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $0.7 million, $0.3 million and $0.6 million for the year ended December 31, 2010, 2009 and 2008, respectively.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2010

Employee Benefit Plans [Abstract]

Employee Benefit Plans


14.	Employee Benefit Plans

ACI 401(k) Plan

The ACI 401(k) Plan is a defined contribution plan covering all domestic employees of the Company. Participants may contribute up to 100% of their pretax annual compensation up to a maximum of $16,500 (for employees who are under the age of 50 on December 31, 2010) or a maximum of $22,000 (for employees aged 50 or older on December 31, 2010). The Company matches participant contributions 100% on every dollar deferred to a maximum of 4% of eligible compensation contributed to the plan, not to exceed $4,000 per employee annually. Company contributions charged to expense during the years ended December 31, 2010, 2009 and 2008 were $2.8 million, $2.9 million, and $3.0 million, respectively.

ACI Worldwide EMEA Group Personal Pension Scheme

The ACI Worldwide EMEA Group Personal Pension Scheme is a defined contribution plan covering substantially all ACI Worldwide (EMEA) Limited (“ACI-EMEA”) employees. For those ACI-EMEA employees who elect to participate in the plan, the Company contributes a minimum of 8.5% of eligible compensation to the plan for employees employed at December 1, 2000 (up to a maximum of 15.5% for employees aged over 55 years on December 1, 2000) or 6.0% of eligible compensation for employees employed subsequent to December 1, 2000. ACI-EMEA contributions charged to expense during the years ended December 31, 2010, 2009 and 2008 were $1.3 million, $1.4 million, and $1.8 million, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes [Abstract]

Income Taxes


15.	Income Taxes

For financial reporting purposes, income before income taxes includes the following components (in thousands):


	Years Ended December 31,
	2010		2009		2008

United States	$	44,400	$	22,020	$	29,276
Foreign		4,302		11,088		(1,720	)

Total	$	48,702	$	33,108	$	27,556

The provision for income taxes consists of the following (in thousands):


	Years Ended December 31,
	2010			2009			2008

Federal
Current	$	1,812		$	9,964		$	3,009
Deferred		12,352			(3,259	)		6,712

Total		14,164			6,705			9,721
State
Current		1,685			1,415			1,951
Deferred		(725	)		(2,356	)		(1,418	)

Total		960			(941	)		533
Foreign
Current		6,366			6,465			4,489
Deferred		17			1,253			2,231

Total		6,383			7,718			6,720

Total	$	21,507		$	13,482		$	16,974

Differences between the income tax provisions computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands):


	Years Ended December 31,
	2010			2009			2008

Tax expense at federal rate of 35%	$	17,045		$	11,588		$	9,645
State income taxes, net of federal benefit		695			(293	)		241
Increase (decrease) in valuation allowance		(1,587	)		(723	)		898
Foreign tax rate differential		1,304			3,389			5,076
Tax effect of foreign operations		3,147			(159	)		1,944
Other		903			(320	)		(830	)

Income tax provision	$	21,507		$	13,482		$	16,974

The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):


	December 31,
	2010			2009

Current net deferred tax assets:
Allowance for uncollectible accounts	$	1,414		$	204
Deferred revenue		4,622			4,255
Alliance deferred costs		(203	)		4,397
Interest rate swaps		—			1,608
U.S. net operating loss carryforwards		—			1,418
Compensation		6,268			6,494
Other		1,250			577

Total current deferred tax assets		13,351			18,953
Less: valuation allowance		(1,034	)		(1,494	)

Net current deferred tax assets	$	12,317		$	17,459

Noncurrent net deferred tax assets:
Noncurrent deferred tax assets
Foreign tax credits	$	6,706		$	8,849
General business credits		1,246			1,926
Stock based compensation		9,921			8,641
Foreign net operating loss carryforwards		4,612			6,511
Capital loss carryforwards		3,259			3,235
Deferred revenue		8,394			7,326
Alliance deferred costs		9,962			9,236
FIN 48 adoption		—			1,103
Other		276			318

Total noncurrent deferred tax assets		44,376			47,145

Noncurrent deferred tax liabilities
Depreciation and amortization		(9,415	)		(12,189	)

Total noncurrent deferred tax liabilities		(9,415	)		(12,189	)

Less: valuation allowance		(6,818	)		(8,932	)

Net noncurrent deferred tax assets (liabilities)	$	28,143		$	26,024

Prior year amounts reflected in the above tables have been reclassified for comparability purposes.

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers projected future taxable income, carryback opportunities and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize the benefits of these deductible differences, net of the valuation allowances recorded. During the year ended December 31, 2010, the Company decreased its valuation allowance by $2.6 million.

At December 31, 2010, the Company had foreign tax NOLs of $19.3 million, of which $10.3 million may be utilized over an indefinite life, with the remainder expiring over the next 15 years. The Company has provided a $2.8 million valuation allowance against the tax benefit associated with these NOLs.

At December 31, 2010, the Company had domestic capital loss carryforwards of $8.9 million for which a full valuation allowance has been provided. The Company had foreign capital loss carryforwards for tax purposes of $0.5 million for which a full valuation allowance has been provided. The domestic losses expire in 2014 and the foreign losses are available indefinitely to offset future capital gains.

The Company had U.S. foreign tax credit carryforwards at December 31, 2010 of $3.1 million, which will begin to expire in 2014. The Company has provided a $0.6 million valuation allowance related to these tax credits. The Company also had domestic general business credit carryforwards at December 31, 2010 of $1.2 million relating to the pre-acquisition periods of acquired companies, which will begin to expire in 2022. Approximately $0.1 million of these credits are alternative minimum tax (“AMT”) credits which have an indefinite carryforward life.

At December 31, 2010, the Company had tax credits associated with various foreign subsidiaries of $1.0 million. The Company has provided a $0.8 million valuation allowance related to these tax credits.

The unrecognized tax benefit at December 31, 2010 and December 31, 2009 was $8.4 million and $10.9 million, respectively, all of which is included in other noncurrent liabilities in the consolidated balance sheet. Of these amounts, $5.7 million and $7.9 million, respectively, represent the net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in respective years.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands):


	2010			2009			2008

Balance of unrecognized tax benefits at beginning of year	$	10,916		$	11,535		$	14,971
Increases for tax positions of prior years		398			5,469			324
Decreases for tax positions of prior years		—			(4,327	)		(3,621	)
Increases for tax positions established for the current period		421			19			1,209
Decreases for settlements with taxing authorities		(3,000	)		(299	)		(823	)
Reductions resulting from lapse of applicable statute of limitation		(308	)		(1,602	)		(174	)
Adjustment resulting from foreign currency translation		(13	)		121			(351	)

Balance of unrecognized tax benefits at end of year	$	8,414		$	10,916		$	11,535

The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and many foreign jurisdictions. The U.S., United Kingdom and Canada are the main taxing jurisdictions in which the Company operates. The years open for audit vary depending on the tax jurisdiction. In the U.S., the Company’s tax returns for years following fiscal year 2004 are open for audit. In the United Kingdom, the Company’s tax returns for the years following 2008 are open for audit, while in Canada, the Company’s tax returns for years following 2003 are open for audit.

The Internal Revenue Service’s audit of the Company’s fiscal year 2005 and 2006 income tax returns was settled for an amount which was consistent with its previously recorded unrecognized tax benefit. The Company’s Canadian income tax returns covering fiscal years 2006 and 2007 are under audit by the Canada Revenue Agency. Other foreign subsidiaries could face challenges from various foreign tax authorities. It is not certain that the local authorities will accept the Company’s tax positions. The Company believes its tax positions comply with applicable tax law and intends to vigorously defend its positions. However, differing positions on certain issues could be upheld by tax authorities, which could adversely affect the Company’s financial condition and results of operations.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $4.7 million due to the expiration of statutes of limitations and the settlement of various audits. The Company accrues interest related to uncertain tax positions in interest expense or interest income and recognizes penalties related to uncertain tax positions in other income or other expense. As of December 31, 2010 and December 31, 2009, $2.2 million and $2.0 million, respectively is accrued for the payment of interest and penalties related to income tax liabilities. The aggregate amount of interest and penalties recorded in the statement of operations in 2010, 2009 and 2008 is $0.4 million, $0.3 million and $0.4 million, respectively.

The undistributed earnings of the Company’s foreign subsidiaries of approximately $64.3 million are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been provided for such undistributed earnings.

Assets of Businesses Transferred Under Contractual Arrangements

12 Months Ended

Dec. 31, 2010

Assets of Businesses Transferred Under Contractual Arrangements [Abstract]

Assets of Businesses Transferred Under Contractual Arrangements


16.	Assets of Businesses Transferred Under Contractual Arrangements

On September 29, 2006, the Company entered into an agreement whereby certain assets and liabilities related to the Company’s MessagingDirect business and WorkPoint product line were legally conveyed to an unrelated party for a total selling price of $3.0 million. Net assets with a book value of $0.1 million were legally transferred under the agreement.

An initial payment of $0.5 million was due at signing and was paid in October of 2006. The remaining $2.5 million was to be paid in installments through 2010. Additionally, the Company remains a reseller of these products for royalty fee of 50% of revenues generated from sales.

Based on the continuing relationship and involvement subsequent to the closing date, uncertainty regarding collectability of the note receivable, as well as the level of financing provided by the Company, the above transaction was not accounted for as a divestiture for accounting purposes. The accounting treatment for this type of transaction is outlined in SEC Staff Accounting Bulletin Topic 5E, Accounting for Divesture of a Subsidiary or Other Business Operation. Under this accounting treatment, the assets and liabilities to be divested are classified in other current assets and accrued other liabilities within the Company’s consolidated balance sheet. Under that guidance, the Company expected to recognize a gain of $2.5 million in future periods as payments were received. These future payments are to be recognized as gains in the period in which they are recovered, once the net assets have been written down to zero. In October 2006 and October 2007, the Company collected $0.5 million of cash pursuant to the contractual arrangements and recognized a pretax gain of $0.4 million in each period. The remaining $0.1 million was recorded as interest income. During the year ended December 31, 2008, the Company offset $0.3 million in invoices payable to the unrelated party against payments due and recognized a pretax gain of $0.2 million. The remaining $0.1 million was recorded as interest income. During the year ended December 31, 2009, the Company sold its right to further payments on the note receivable to a third-party for $1.0 million, which was recorded as a pretax gain.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies [Abstract]

Commitments and Contingencies


17.	Commitments and Contingencies

In accordance with ASC 460, Guarantees, the Company recognizes the fair value for guarantee and indemnification arrangements it issues or modifies, if these arrangements are within the scope of the interpretation. In addition, the Company must continue to monitor the conditions that are subject to the guarantees and indemnifications as required under the previously existing generally accepted accounting principles, in order to identify if a loss has occurred. If the Company determines it is probable that a loss has occurred, then any such estimable loss would be recognized under those guarantees and indemnifications. Under its customer agreements, the Company may agree to indemnify, defend and hold harmless its customers from and against certain losses, damages and costs arising from claims alleging that the use of its software infringes the intellectual property of a third-party. Historically, the Company has not been required to pay material amounts in connection with claims asserted under these provisions and accordingly, the Company has not recorded a liability relating to such provisions.

Under its customer agreements, the Company also may represent and warrant to customers that its software will operate substantially in conformance with its documentation and that the services the Company performs will be performed in a workmanlike manner, by personnel reasonably qualified by experience and expertise to perform their assigned tasks. Historically, only minimal costs have been incurred relating to the satisfaction of warranty claims. In addition, from time to time, the Company may guarantee the performance of a contract on behalf of one or more of its subsidiaries, or a subsidiary may guarantee the performance of a contract on behalf of another subsidiary.

Other guarantees include promises to indemnify, defend and hold harmless the Company’s executive officers, directors and certain other key officers. The Company’s certificate of incorporation provides that it will indemnify, and advance expenses to, its directors and officers to the maximum extent permitted by Delaware law. The indemnification covers any expenses and liabilities reasonably incurred by a person, by reason of the fact that such person is or was or has agreed to be a director or officer, in connection with the investigation, defense and settlement of any threatened, pending or completed action, suit, proceeding or claim. The Company’s certificate of incorporation authorizes the use of indemnification agreements and the Company enters into such agreements with its directors and certain officers from time to time. These indemnification agreements typically provide for a broader scope of the Company’s obligation to indemnify the directors and officers than set forth in the certificate of incorporation. The Company’s contractual indemnification obligations under these agreements are in addition to the respective directors’ and officers’ rights under the certificate of incorporation or under Delaware law.

Operating Leases

The Company leases office space and equipment under operating leases that run through October 2028. The leases that the Company has entered into do not impose restrictions as to the Company’s ability to pay dividends or borrow funds, or otherwise restrict the Company’s ability to conduct business. On a limited basis, certain of the lease arrangements include escalation clauses which provide for rent adjustments due to inflation changes with the expense recognized on a straight-line basis over the term of the lease. Lease payments subject to inflation adjustments do not represent a significant portion of the Company’s future minimum lease payments. A number of the leases provide renewal options, but in all cases such renewal options are at the election of the Company. Certain of the lease agreements provide the Company with the option to purchase the leased equipment at its fair market value at the conclusion of the lease term.

Total operating lease expense for the years ended December 31, 2010, 2009 and 2008 was $17.8 million, $17.2 million, and $18.7 million, respectively.

Capital Leases

The Company leases certain property under capital lease agreements that expire during various years through 2014. The long term portion of capital leases is included in long term liabilities. Amortization expense of assets under capital lease is included in depreciation expense.

Aggregate minimum lease payments under these agreements in future fiscal years are as follows (in thousands):


	Capital			Operating
Fiscal Year Ending December 31,	Leases			Leases		Total

2011	$	1,223		$	9,895	$	11,118
2012		1,097			8,983		10,080
2013		743			8,533		9,276
2014		137			7,098		7,235
2015		—			6,428		6,428
Thereafter		—			37,399		37,399

Total minimum lease payments	$	3,200		$	78,336	$	81,536

Amount representing interest		(338	)

Present value of minimum lease payments	$	2,862

Legal Proceedings

From time to time, the Company is involved in various litigation matters arising in the ordinary course of its business. The Company is not currently a party to any legal proceedings, the adverse outcome of which, individually or in the aggregate, the Company believes would be likely to have a material adverse effect on the Company’s financial statements.

International Business Machines Corporation Alliance

12 Months Ended

Dec. 31, 2010

International Business Machines Corporation Alliance [Abstract]

International Business Machines Corporation Alliance


18.	International Business Machines Corporation Alliance

On December 16, 2007, the Company entered into a Master Alliance Agreement (“Alliance”) with IBM relating to joint marketing and optimization of the Company’s electronic payments application software and IBM’s middleware and hardware platforms, tools and services. On March 17, 2008, the Company and IBM entered into Amendment No. 1 to the Alliance (“Amendment No. 1” and included hereafter in all references to the “Alliance”), which changed the timing of certain payments to be made by IBM. Under the terms of the Alliance, each party will retain ownership of its respective intellectual property and will independently determine product offering pricing to customers. In connection with the formation of the Alliance, the Company granted warrants to IBM to purchase up to 1,427,035 shares of the Company’s common stock at a price of $27.50 per share and up to 1,427,035 shares of the Company’s common stock at a price of $33.00 per share. The warrants are exercisable for five years. At the date of issuance, the Company utilized a valuation model prepared by a third-party to assist management in estimating the fair value of the common stock warrants.

Under the terms of the Alliance, on December 16, 2007, IBM paid the Company an initial non-refundable payment of $33.3 million in consideration for the estimated fair value of the warrants described above. The fair value of the warrants granted, as subsequently determined by an independent third-party appraiser, is approximately $24.0 million and is recorded as common stock warrants in the accompanying consolidated balance sheet as of December 31, 2010 and 2009. The remaining balance of $9.3 million is related to prepaid incentives and other obligations and was recorded in the Alliance agreement liability at December 31, 2007.

During the year ended December 31, 2008, the Company received an additional payment from IBM of $37.3 million in accordance with the terms of Amendment No. 1. This payment has been recorded in the Alliance agreement liability in the accompanying consolidated balance sheets as of December 31, 2010 and 2009. This amount represents a prepayment of funding for technical enablement milestones and incentive payments to be earned under the Alliance and related agreements and, accordingly, a portion of this payment is subject to refund by the Company to IBM under certain circumstances. As of December 31, 2010 and 2009, $20.7 million is refundable subject to achievement of future milestones. No additional payments were received in 2010 or 2009 relating to Amendment No. 1.

The future costs incurred by the Company related to internally developed software associated with the technical enablement milestones will be capitalized in accordance with ASC 985-20, Software — Cost of Software to be Sold, Leased, or Marketed, when the resulting product reaches technological feasibility. Prior to reaching technological feasibility, the costs will be expensed as incurred. The Company will receive partial reimbursement from IBM for expenditures incurred if certain technical enablement milestones and delivery dates specified in the Alliance are met. Reimbursements from IBM for expenditures determined to be direct and incremental to satisfying the technical enablement milestones will be used to offset the amounts expensed or capitalized as described above but not in excess of non-refundable cash received or receivable. During the years ended December 31, 2010 and 2009, the Company incurred $9.9 million and $11.0 million of costs related to fulfillment of the technical enablement milestones, respectively. The reimbursement of these costs was recorded as a reduction of the Alliance agreement liability and a reduction in capitalizable costs under ASC 985-20 in the accompanying consolidated balance sheets as of December 31, 2010 and 2009, and a reduction of operating expenses in the accompanying consolidated statement of operations for the years ended December 31, 2010 and 2009.

Changes in the Alliance agreement liability were as follows (in thousands):


	Alliance
	Agreement
	Liability

Balance, December 31, 2008	$	43,522
Costs related to fulfillment of technical enablement milestones		(11,035	)

Balance, December 31, 2009		32,487
Costs related to fulfillment of technical enablement milestones		(9,903	)

Balance, December 31, 2010	$	22,584

Of the $22.6 million Alliance agreement liability, $1.9 million is short-term and $20.7 million is long-term in the accompanying consolidated balance sheet as of December 31, 2010.

Of the $32.5 million Alliance agreement liability, $10.5 million is short-term and $22.0 million is long-term in the accompanying consolidated balance sheet as of December 31, 2009.

IBM will pay the Company additional amounts upon meeting certain prescribed technical enablement obligations and incentives payable upon IBM recognizing revenue from end-user customers as a result of the Alliance. The revenue related to the incentive payments will be deferred until the Company has reached substantial completion of the technical enablement milestones. Subsequent to reaching substantial completion, revenue will be recognized as sales incentives are earned.

The stated initial term of the Alliance is five years, subject to extension for successive two year terms if not previously terminated by either party and subject to earlier termination for cause.

International Business Machines Corporation Information Technology Outsourcing Agreement

12 Months Ended

Dec. 31, 2010

International Business Machines Corporation Information Technology Outsourcing Agreement [Abstract]

International Business Machines Corporation Information Technology Outsourcing Agreement


19.	International Business Machines Corporation Information Technology Outsourcing Agreement

On March 17, 2008, the Company entered into a Master Services Agreement (“Outsourcing Agreement”) with IBM to outsource the Company’s internal information technology (“IT”) environment to IBM. Under the terms of the Outsourcing Agreement, IBM provides the Company with global IT infrastructure services including the following services, which services were provided by the Company: cross functional delivery management services, asset management services, help desk services, end user services, server system management services, storage management services, data network services, enterprise security management services and disaster recovery/ business continuity plans (collectively, the “IT Services”). The Company retains responsibility for its security policy management and on-demand business operations.

The initial term of the Outsourcing Agreement is seven years, commencing on March 17, 2008. The Company has the right to extend the Outsourcing Agreement for one additional one-year term unless otherwise terminated in accordance with the terms of the Outsourcing Agreement. Under the Outsourcing Agreement, the Company retains the right to terminate the agreement both for cause and for its convenience. However, upon any termination of the Outsourcing Agreement by the Company for any reason (other than for material breach by IBM), the Company will be required to pay a termination charge to IBM, which charge may be material.

The Company pays IBM for the IT Services through a combination of fixed and variable charges, with the variable charges fluctuating based on the Company’s actual need for such services as well as the applicable service levels and statements of work. Based on the currently projected usage of these IT Services, the Company expects to pay $116 million to IBM in service fees and project costs over the initial seven-year term.

In addition, IBM provided the Company with certain transition services required to transition the Company’s IT operations embodied in the IT Services in accordance with a mutually agreed upon transition plan (the “Transition Services”). Transition Services were completed approximately 21 months after the effective date of the Outsourcing Agreement and the Company paid approximately $6.7 million for the Transition Services. These Transition Services were recognized as incurred based on the capital or expense nature of the cost. The Company expensed approximately $0.1 million and $6.6 million for Transition Services during the years ended December 31, 2009 and 2008, respectively, that were included in general and administrative expenses in the accompanying consolidated statement of operations. Of the $6.7 million recognized, approximately $3.7 million has been paid, approximately $1.6 million is included in other noncurrent liabilities and $1.4 million is included in other current liabilities in the accompanying consolidated balance sheet at December 31, 2010. The Company incurred an additional $0.9 million of staff augmentation costs related to the Transition Services during the year ended December 31, 2008, that are included in general and administrative expenses in the accompanying consolidated statement of operations. No staff augmentation costs were incurred in 2009 or in 2010. The Company incurred an additional $0.2 million and $0.1 million of datacenter moving costs related to the Transition Services during the years ended December 31, 2009 and 2008, respectively, that are included in general and administrative expenses in the accompanying consolidated statement of operations. No transition costs were incurred by the Company in 2010 nor does the Company anticipate any material future transition costs related to the Outsourcing Agreement.

The Outsourcing Agreement has performance standards and minimum services levels that IBM must meet or exceed. If IBM fails to meet a given performance standard, the Company would, in certain circumstances, receive a credit against the charges otherwise due.

Additionally, the Company has the right to periodically perform benchmark studies to determine whether IBM’s price and performance are consistent with the then current market. The Company has the right to conduct such benchmark studies, at its cost, beginning in the second year of the Outsourcing Agreement.

As a result of the Outsourcing Agreement, 16 employees of the Company became employees of IBM and an additional 62 positions were eliminated by the Company. During the year ended December 31, 2008, $1.8 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statements of operations. The charges by segment were as follows: $1.5 million in the Americas segment, $0.1 million in the EMEA segment, and $0.2 million in the Asia Pacific segment. No additional termination costs were incurred in 2009 or 2010 related to the IBM outsourcing agreement.


	Termination
	Benefits

Balance, December 31, 2008	$	465
Amounts paid during the period		(389	)
Other(1)		1

Balance, December 31, 2009		77
Amounts paid during the period		(77	)

Balance, December 31, 2010	$	—


(1)		Includes the impact of foreign currency translation.

As of December 31, 2010, there were no accrued compensation costs relating to these termination costs in the accompanying consolidated balance sheet.

Quarterly Financial Data

12 Months Ended

Dec. 31, 2010

Quarterly Financial Data [Abstract]

Quarterly Financial Data


20.	Quarterly Financial Data


	Quarter Ended
	December 31,			September 30,			June 30,			March 31,
	2010			2010			2010			2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Revenues:
Software license fees	$	66,039		$	37,804		$	31,399		$	29,317
Maintenance fees		35,414			32,480			34,207			33,422
Services		26,745			15,439			17,187			14,618
Software hosting fees		13,043			11,294			9,630			10,386

Total revenues		141,241			97,017			92,423			87,743

Expenses:
Cost of software license fees(1)		3,322			3,088			3,107			3,074
Cost of maintenance, services and hosting fees(1)		30,981			28,956			29,303			27,892
Research and development		18,717			18,165			18,798			18,396
Selling and marketing		19,786			17,933			15,989			16,845
General and administrative		20,558			16,341			15,735			17,462
Depreciation and amortization		5,078			5,146			5,125			4,979

Total expenses		98,442			89,629			88,057			88,648

Operating income (loss)		42,799			7,388			4,366			(905	)
Other income (expense):
Interest income		230			185			126			124
Interest expense		(514	)		(418	)		(541	)		(523	)
Other, net		(163	)		(1,556	)		(1,682	)		(214	)

Total other income (expense)		(447	)		(1,789	)		(2,097	)		(613	)

Income (loss) before income taxes		42,352			5,599			2,269			(1,518	)
Income tax expense		15,254			3,263			2,419			571

Net income (loss)	$	27,098		$	2,336		$	(150	)	$	(2,089	)

Earnings (loss) per share
Basic(2)	$	0.82		$	0.07		$	(0.00	)	$	(0.06	)
Diluted(2)	$	0.80		$	0.07		$	(0.00	)	$	(0.06	)


(1)		The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation.

(2)		The sum of the earnings per share by quarter does not agree to the earnings per share for the year ended December 31, 2010 due to rounding.


	Quarter Ended
	December 31,			September 30,			June 30,			March 31,
	2009			2009			2009			2009
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Revenues:
Software license fees	$	56,868		$	40,396		$	26,433		$	30,820
Maintenance fees		35,754			33,314			31,928			29,926
Services		23,724			20,813			17,691			17,918
Software hosting fees		9,565			9,938			11,118			9,549

Total revenues		125,911			104,461			87,170			88,213

Expenses:
Cost of software license fees(1)		3,818			3,936			3,833			3,167
Cost of maintenance, services and hosting fees(1)		29,757			27,959			27,955			27,222
Research and development		18,530			20,071			19,932			18,973
Selling and marketing		16,269			14,911			15,511			15,108
General and administrative		17,811			21,064			18,865			21,504
Depreciation and amortization		4,756			4,577			4,310			4,346

Total expenses		90,941			92,518			90,406			90,320

Operating income (loss)		34,970			11,943			(3,236	)		(2,107	)
Other income (expense):
Interest income		178			117			446			301
Interest expense		(1,073	)		(488	)		(526	)		(769	)
Other, net		(1,929	)		16			(3,615	)		(1,120	)

Total other income (expense)		(2,824	)		(355	)		(3,695	)		(1,588	)

Income (loss) before income taxes		32,146			11,588			(6,931	)		(3,695	)
Income tax expense		12,585			3,829			(3,369	)		437

Net income (loss)	$	19,561		$	7,759		$	(3,562	)	$	(4,132	)

Earnings (loss) per share
Basic(2)	$	0.58		$	0.23		$	(0.10	)	$	(0.12	)
Diluted(2)	$	0.57		$	0.23		$	(0.10	)	$	(0.12	)


(1)		The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation.

(2)		The sum of the earnings per share by quarter does not agree to the earnings per share for the year ended December 31, 2009 due to rounding.